| Property: | Spanish Mountain Gold Project | |
| Ownership: | 100% Ownership | |
| Symbol: | TSX.V: SPA | OTC: SPAZF | |
| Location: | British Columbia, Canada | |
| Share Structure: | Shares Issued & Outstanding: Fully Diluted: | 312,689,384 407,435,478 |
| Market Capital: | ~ $180 Million | |
| Management: | Larry Yau, CEO Sharon Ng, CFO Judy Stoeterau, VP of Geology | |
| Board of Directors: | Morris Beattie Don Coxe Dale Corman Christopher Lattanzi | James Clare W. Terry MacLean Sara Heston |
Highlights of Proposed Operations (PEA - December 2019)
Phase I operation has a mine life of 11 years with peak production of 130,000 ounces per annum (Year 4) and an average LOM annual production of 104,000 ounces of gold for a total of 1,145,000 ounces.
Operational and Cost Metrics
| Units | Years 1 - 5 Average | Lif of Mine | |
|---|---|---|---|
| Gold grade | g/t | 1.13 | 1.00 |
| Recovery | % | 91 | 91 |
| Annual Gold Production | koz | 116 | 104 |
| Cash Cost/ oz | US$ | 481 | 511 |
| All-in-sustainable Cash Cost/ oz | US$ | 519 | 549 |
| Total Cost/ oz | US$ | 776 | 807 |
Project Economics
| Project Economics at Select Gold Price (US$) | Units | $1,100 | $1,200 | $1,275* | $1,450 | $1,500 | $1,600 | $1,700 | $1,800 |
|---|---|---|---|---|---|---|---|---|---|
| Pre-tax | |||||||||
| NPV at 5% | C$mm | $232 | $336 | $414 | $596 | $648 | $752 | $856 | $960 |
| Internal Rate of Return (IRR) | % | 16% | 20% | 23% | 29% | 31% | 34% | 37% | 40% |
| Payback of Initial Capex | Years | 4.3 | 3.8 | 3.5 | 2.9 | 2.8 | 2.6 | 2.4 | 2.2 |
| Post-tax | |||||||||
| NPV at 5% | C$mm | $201 | $274 | $325 | $443 | $476 | $543 | $609 | $676 |
| Internal Rate of Return (IRR) | % | 15% | 18% | 21% | 26% | 27% | 30% | 32% | 35% |
| Payback of Initial Capex | Years | 4.3 | 3.8 | 3.5 | 3.0 | 2.9 | 2.6 | 2.4 | 2.3 |
*base case
Processed Materials in Mine Plan
| PEA Mine Plan Summary | Unit | Amount |
|---|---|---|
| Measured and Indicated Mill Feed | Mt | 39.10 |
| Gold Grade | g/t | 1.00 |
| Silver Grade | g/t | 0.74 |
| Measured and Indicated Gold | koz | 1,258 |
| Measured and Indicated Silver | koz | 927 |
Initial Capital Expenditures
| Direct Costs | Initial Capital Cost (C$ Million) |
|---|---|
| Overall Site | 6.7 |
| Open Pit Mining | 70.2 |
| Processing Plant (including Ore Handling) | 77.4 |
| Tailing Management Facility & Water Management | 46.7 |
| Environmental | 12.0 |
| On-Site Infrastructure | 24.0 |
| Off-Site Infrastructure | 17.1 |
| Sub-Total | 254.1 |
| Indirect Costs | |
| Project Indirects | 58.9 |
| Owner’s Costs | 9.3 |
| Contingencies | 41.5 |
| Sub-Total | 109.7 |
| Total Initial Capital Cost | 363.8 |
Unit Operating Cost
| Area | Unit Cost (C$) |
|---|---|
| Mining ($/t mined) | $2.48 |
| Mining ($/t milled) | $10.73 |
| Processing ($/t milled) | $6.14 |
| Tailings ($/t milled) | $0.16 |
| G&A ($/t milled) | $2.06 |
| Total ($/t milled) | $19.10 |
